TOKYO, July 27 (Reuters) - Japanese equities rose on
Tuesday, tracking overnight gains on Wall Street as investors
cheered upbeat corporate earnings, but the benchmark Nikkei 225
failed to close above the 28,000 key psychological level
for a second straight session.
Like Monday, the Nikkei briefly traded above that level but
pared gains before the close amid caution ahead of this week's
Federal Reserve policy meeting and a pick-up in both the U.S.
and Japanese earnings seasons.
The Nikkei share average finished the day 0.49% higher at
27,970.22. It hasn't closed above 28,000 since July 16.
The broader Topix climbed 0.64% to 1,938.04.
On Wall Street, the S&P 500, Dow and Nasdaq
all posted record closing highs overnight.
"The overall strong earnings from corporate America have
investors thinking the U.S. recovery is on track, and that
should also be a plus for Japan's economy," said Masahiro
Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset
"At 28,000 though, investors are adopting a wait-and-see
stance before trying to take Nikkei higher."
Stocks tied to the global economic recovery outperformed,
with the Topix value index rising 0.79%, compared to a
0.5% advance in the growth index.
Among Topix sub-sectors, airlines rallied the
most with a 3.29% climb. Next was non-ferrous metals
with a 2.09% jump, followed by a 1.74% advance for iron and
The Fed starts a two-day meeting later in the day, and
investors will be watching closely for any new hints about when
the U.S. central bank would pare back stimulus.
Tech giants Apple Inc, Microsoft Corp,
Amazon.com Inc and Google parent Alphabet Inc
all report earnings with week.
On the Nikkei, Sumitomo Metal Mining Co led gains
with a 4.49% advance, followed by a 3.96% rise in fishing and
frozen-foods company Nippon Suisan Kaisha and a 3.3%
increase in airline ANA Holdings.
Rakuten Group led the losers, diving 7.31% after
ratings company S&P downgraded the e-commerce firm, citing
souring finances tied to the launch of its mobile phone
(Reporting by Kevin Buckland in Tokyo, Editing by Sherry
Jacob-Phillips and Subhranshu Sahu)